Market Position

The Company operates on the Belarusian retail market, one of the most attractive markets in Europe, which demonstrated the leading growth rates in 2012–2017 (+29%).

At the same time, the market has strong fundamentals for further solid growth due to low penetration of modern retail formats (46% in 2017) and low selling space provision (99 sq m per '000 people in 2017) compared to both developed and emerging markets.

Modern retail trade, CAGR 2017-2022E (in local currency)

Belarus

15%

Turkey

13%

Ukraine

12%

Georgia

6%

Russia

6%

Poland

5%

Germany

4%

Spain

4%

France

2%

UK

2%

Source: BCG Report

Modern formats penetration in grocery retail, 2017

UK

89%

Germany

86%

Poland

81%

France

80%

Spain

78%

Russia

66%

Ukraine

60%

Turkey

49%

Belarus

46%

Georgia

28%

Source: BCG Report

The Company is the largest grocery retailer in the Belarus grocery retail market with market share in 2017 of approximately 19 per cent. in the overall food retail market according to the BCG Report. In the modern format grocery retail market, the Group’s 2017 market share was approximately 41 per cent., which was more than 5 times that of the second largest competitor and higher than the combined market share of the next seven competitors, according to the BCG Report.

Eurotorg is the only nationwide retailer present in 225 localities. In 134 localities, the Company is the only operator of modern retail formats.

Regional coverage by the key market players, number of localities as of 30 June 2018

Eurotorg

225

# 2

20

# 3

13

# 4

24

# 5

6

# 6

12

# 7

18

# 8

1

Source: companies’ data

Eurotorg LLC entered the Unified State Register of Legal Entities and Individual Entrepreneurs under No. 101168731 on the resolution of the Minsk City Executive Committee on September 7, 2000 No. 1030. All rights reserved.